The penalties for a trustee who fails to follow the instructions of a trust can vary depending on the specific circumstances. Generally, trustees have a fiduciary duty to act in the best interests of the beneficiaries and to follow the terms of the trust.
If a trustee fails to adhere to the trust instructions, beneficiaries or other interested parties may take legal action to enforce the terms of the trust and seek remedies. The court may intervene and take action to hold the trustee accountable for their actions or lack thereof.
Some potential penalties for a trustee’s breach of trust could include:
- Removal: The court can remove a trustee who has breached their duties and appoint a new trustee to administer the trust.
- Surcharge: A trustee may be required to reimburse the trust for any losses or damages resulting from their breach of trust.
- Damages: Beneficiaries who suffer financial harm due to a trustee’s breach may be entitled to seek compensation for their losses.
- Injunction: The court may issue an injunction to prevent the trustee from further breaching the trust instructions or taking certain actions.
- Legal costs: The trustee may be responsible for paying the legal costs associated with any litigation resulting from their breach of trust.
In many situations, the trustee is provided with broad discretion for taking certain actions in reference to a trust.
It’s important to consult with a qualified attorney.
